These are the reasons for the selloff in my opinion:
1) stocks are discounting mechanisms and one has to ask "does it get better from here."
2) Leiner -(and if you don't know who they are you should be in a mutual fund) Compares start to get more difficult from here as Leiner's OTC storebrand manufacturing was shut down last year in the March quarter.
3)excuse my spelling, but the ceterizine and omeprazole will both face increasing competition from here.
4) valuation is stretched and the stock is decelerating. Here we have what is seasonally a strong quarter for PRGO (and it was) and they posted 0.47 after some questionable adjustments. Giving them the benefit of the doubt, let's say they can do $2.00 next year (I don't care where the street's at) CHC has historically been a slow growth business, RX is earnings are short lived- at most I would pay 18x for this business, or $36.
Looks like the typical 'sell the news' shakeout. Key support is holding so best to treat it as a bump in the road.
I sometimes wonder if I should sell every stock at the close on the day before earnings, then buy back after the announcement. Can't believe how often these irrational dumps occur.
Agree with spring5022 ... Looks like someone rode the elevator up and got off at the last floor... I checked and found a discounted sale in pre-hours, but without any volume and then a series of follow-up sales with increasing volume accounting for the drop.. Buy the dips, sell the news!
I've been following this stock for awhile.. It has had good write-ups, just bought my first 200 shares this AM at the bottom (with a **REAL** tight stop... ) The only thing that I can see as a detriment, is that it really only markets generics and there is a lot of competition in this field right now.. And with the economy doing its thing, these products might be a dog on the market(We are in a recession aren't we.. I mean... DOW's up 26 points ???!!!??? Some recession... ).
Bye jegan ;-)
Would like to know the same thing. News on results seemed good, so I am at a loss. Picked up a couple of cheap options around the 40 level in case there is a bounce, but now it looks like it's all down hill for now.